I guess that will be released on the same day as the iPhone with a 2.8" screen that has been predicted to be released in the near future for the past two years.
There won't be a 7" iPad. Ever. It just doesn't make any sense since it would lead to further hardware fragmentation (software would have to be redesigned) without any benefits at all. The iPad features a much bigger screen than the iPhone which opens up new possibilities; a 7" version would just be between an iPhone and the current iPad.